The role of supply vessels in offshore logistics
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The role of supply vessels in offshore logistics B j ø r n a r A a s * , Ø y v i n d H a l s k a u S r a n d S t e i n W. Wa l l a c e Molde University College, The Norwegian School of Logistics, PO Box 2110, NO-6402, Molde, Norway. E-mail: [email protected] *Corresponding author.
A b s t r a c t Oil companies are gradually becoming more focused on optimizing their upstream logistics. However, little research regarding upstream logistics has been published. We argue that more research would be beneficial and that more attention must be given to one of the largest cost elements in the upstream chain – the supply vessels. We explore the supply vessel as a means of transport and carry out a logistics analysis based on their use on the Norwegian continental shelf. Carrying capacity, sailing, loading and unloading capabilities are established as the main features of a supply vessel. Thereafter we discuss relevant logistical trade-offs within and among these features, and also in relation to the environment the vessels operate in. This elaboration clearly shows the complexity involved when searching for the ‘optimal’ supply vessel. The analysis also indicates the design and logistics system features that should be challenged in the future. We believe that the findings in this article will be of considerable value for both practitioners and academics. Maritime Economics & Logistics (2009) 11, 302–325. doi:10.1057/mel.2009.7
Keywords: oil industry; supply vessels; logistics; design
Introduction Norway’s oil and gas production takes place offshore. In order to ensure continuous production, the offshore installations need to be supplied regularly. The only way to do this is by using supply vessels that represent one of the largest cost elements in the upstream supply chain of oil and gas installations. r 2009 Palgrave Macmillan 1479-2931 Maritime Economics & Logistics www.palgrave-journals.com/mel/
Vol. 11, 3, 302–325
The role of supply vessels in offshore logistics
Supply vessels are usually chartered rather than owned by the oil companies. However, the oil companies decide the use of the vessels. In practice, this means that activities such as scheduling and routing are the responsibility of the oil company. In the literature, this type of logistics planning problem is often mentioned as a vehicle routing problem (Toth and Vigo, 2002). Such problems are usually solved by using optimization techniques or simulation. For a review of the literature focusing on ship routing and scheduling, see Christiansen et al (2004). Presently such approaches are not commonly used in the oil and gas industry when planning for the use of supply vessels. We believe that there are two main reasons for this. First, the formal logistics competence of the logistics planners within the oil companies has traditionally been low. Second, logistics research with focus on supply vessels and their routing has not been given much attention in the past. The more deep-rooted reason for this is that logistics is an important activity for oil com
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